Official figures show that British factory gate inflation accelerated unexpectedly in March, boosting expectations that interest rates will rise next month.
The Office for National Statistics said output prices rose 0.6% on the month in March, taking the annual rate to 2.7% - the highest since August 2006 and above forecasts for a steady reading of 2.2%.
The figures suggested firms are managing to raise prices to repair profit margins damaged by a spike in energy costs last year.
The Bank of England is expected to raise interest rates to 5.5% next month having hiked already three times since last August to curb inflation.
